We have investigated magnetic resonance imaging (MRI) of laser polarized liquid xenon and image exchange between the liquid and vapor phases. The exceptionally large magnetization density of this liquid should allow MRI with micron-scale spatial resolution without signal averaging. Applications may include imaging of density equilibration and convective flow near xenon's liquid-vapor critical point, low-field imaging of porous media microstructure, and mapping of the dynamics of two-phase (liquid-gas) flows.